GMO Internet Crypto Mining Firm Ceases Bitcoin Cash (BCH) Mining Operations
Crypto-Mining Firm, GMO Internet Ceases Bitcoin Cash [BCH] Mining
A published document revealed that Japanese Bitcoin-mining firm, GMO Internet has stopped mining BCH. The document was first discussed upon during “The Bitcoin Knowledge Podcast”, and it shows that the firm did not mine any BCH in April 2018. This year, February is the only month in which GMO Internet saw increased productions of nearly 287.
The host of the podcast, Trace Mayer tweeted the news with a screenshot dubbed, “Crypto Mining Business: Monthly Report for July 2018.” It turns out that July’s hash rate has not improved compared to the previous month (sitting at 384). This could either indicate a possible lack of interest in BCH on the firm’s part, or more importance given to Bitcoin.
In addition to BCH mining, GMO Internet’s focus on Bitcoin [BTC] was also highlighted. BTC production has been increasing since December 2017, where the firm went from mining 21 BTC to July 2018’s 568.
Mayer’s tweet questioned the reason for such a halt in production and mentioned:
Why would GMO Internet switch all mining capacity to $BTC from $BCH? Only ~$37,867 for one hour 51% $BCH attack? Does DARI ratio account for block maturation times? Nov fork? What could possibly happen with this $9B testnet? Sure is fun to watch! 😂 💩 https://t.co/2P55FNxK23 pic.twitter.com/hZLx2hDUk6
— Trace Mayer [Jan/3➞₿🔑∎] (@TraceMayer) August 24, 2018
In response to Mayer’s tweet, a Twitter user (@monerotrader) mentioned why GMO Internet might have stopped mining BCH, and it seems like a strategic move on the former’s part. In particular, it was noted that GMO was:
It means they are smart enough to realize that less than $40k for a 51% attack against the chain they have the most stake of mining hardware in is probably not the best long term strategy.
— monero trader (@monerotrader) August 24, 2018
Either the firm views BCH as vulnerable to attacks or does not see it profitable in any way.
According to CCN, GMO originally planned to scale its operations to 3,000PH/s by December, but actual action shows that the firm might not succeed in doing so. This is the same firm that sold the first ever bitcoin mining chip (B2), which has since sold out. A developed version, dubbed B3 can currently be pre-ordered, and seems like a fitting competitor against Bitmain’s Antminer S9, which supports a hashpower of 14TH/s – almost half of B3’s.
What are your thoughts on GMO’s halt in BCH mining? Were they right in backing off earlier on due to low profitability? Share below.